Some of the biggest tech companies in the world are creating their own semiconductors, instead of relying only on high-demand standard chips.
According to media reports and company announcements, Apple, Amazon, Facebook and Tesla are all moving away from established chip companies and bringing some aspects of chip development in house.
Accenture's global semiconductor lead, Syed Alam, stated to CNBC that companies are increasingly looking for custom-made chips that meet their specific needs, rather than using the same generic chips as competitors.
Alam explained that this gives them more control over software and hardware integration, while also distinguishing them from their competitors.
Russ Shaw, an ex-non-executive director of Dialog Semiconductor in the U.K., stated to CNBC that custom-designed chips are more efficient and cheaper.
Shaw stated that "These chips are specifically designed to help reduce energy consumption for devices or products from the particular tech company, regardless of whether it is related to smartphones and cloud services."
CNBC's Glenn O'Donnell, Forrester's research director, said that the global chip shortage is another reason big tech companies are rethinking where their chips come from. The pandemic caused a major disruption in supply chains and accelerated the pace of companies making their own chips.
O'Donnell stated that many felt restricted in their innovation speed due to being locked into the timelines of chipmakers.
